Bitcoin Surges Above $8000 Despite $30 Million Hack at Tether

The cryptocurrency has been on a roll over the last six months, steadily rising despite hacks and other setbacks.
Danielle  De La Bastide

After a hack shook up the cryptocurrency world, leader Bitcoin didn’t seem to feel the burn and rose to $8,090 and stayed up by 0.66 percent.

The rise was due to a sell-off after Tether reported a theft of $31 million from its pegged token, USDT. Tether blamed external sources for the robbery.

"$30,950,010 USDT was removed from the Tether Treasury wallet on Nov. 19, 2017, and sent to an unauthorized bitcoin address. As Tether is the issuer of the USDT managed asset, we will not redeem any of the stolen tokens, and we are in the process of attempting token recovery to prevent them from entering the broader ecosystem,” wrote the company on the website, the post has since been removed.

Tether was initially launched as Realcoin but later changed its name during a rebranding. The company aims to serve as a proxy for US currency that can be sent between exchanges including Bitifinex, Polonium and additional markets.

Bitcoin Surges Above $8000 Despite $30 Million Hack at Tether
Source: Tether/GitHub

In response to the breach, Tether claimed it was releasing new software to freeze the tokens that were allegedly stolen. This could be the reason for the surge in Bitcoin since traders saw the lockup of Tether’s Omni Core software.

“Should nodes in the network adopt the software, it would effectively blacklist the stolen address, enacting an emergency fork to contain the funds,” said CoinDesk.

A $10,000 Christmas for Bitcoin

Meanwhile, Bitcoin recovered well despite the setback. The cryptocurrency is seeing such a windfall that many in the industry even predict the digital currency will hit $10,000 by the end of the year.

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Bitcoin Surges Above $8000 Despite $30 Million Hack at Tether
Source: Bloomberg TV

Speaking with Bloomberg Daybreak: Americas yesterday, billionaire and ex-fund manager Michael Novogratz said that "I think we'll hit a new high soon ... we'll end the year at $10,000 in bitcoin.”


He also added that the Tether hack was down to it being “a very young experiment.” Novogratz, a former principal at investment firm Fortress and ex-partner at Goldman Sachs, is even leaving retirement to start his own $500 million fund, called the Galaxy Digital Asset fund for cryptocurrencies, token sales, and startups. He’s committed $150 million of his own money to the venture and aims to raise the rest by January through wealthy individuals and hedge fund managers reports CNBC.

"I never thought I'd come out of retirement, but the space is so exciting right now I decided to build a business, hire a whole bunch of smart guys, and we're gonna to raise a fund ... and hopefully take advantage of what I see as a revolution, actually. A decentralized revolution,” he told CNBC’s Fast Money.